We often get asked by clients: “Which minimum wage do we need to follow if we have employees in multiple states?”

The answer is straightforward: Employees should be paid the minimum wage for the location where they perform the work, whether that’s at company headquarters, a satellite office, or their own home.

Here’s what you need to know to stay compliant:

Q: Which minimum wage applies if employees work in multiple states?

1. Pay for the Location Where Work Is Performed

• If an employee usually works in Texas but travels to California for one week, they must receive California’s minimum wage during that time.

• This applies to all types of employees, including hourly and remote workers.

2. Account for Local or Job-Specific Rates

• Some states and cities have different minimum wages based on job type (e.g., healthcare, hospitality).

• Always check local laws if employees are working temporarily in a different location.

3. Follow the Law Most Beneficial to the Employee

• Employment laws generally require you to use the law that gives the employee the highest benefit.

• This helps reduce risk and ensures fairness.

Note: This Q&A is for informational purposes only and does not constitute legal advice. Always confirm specifics with a qualified employment law professional or your HR consultant.

Takeaway: Paying the correct minimum wage in multi-state situations is critical for compliance and employee satisfaction. Clear tracking of employee work locations and understanding local wage laws will help prevent mistakes.

For more guidance on payroll compliance and small business HR practices, check out:

• The 10-Minute HR Audit: What Every Small Business Should Review This Quarter

• Employee Mental Health Is Your Business — Even If You’re Not a Therapist

For expert help, contact Consult HR Services.